(Reuters) – General Electric (GE) raised the bottom of its full-year profit guidance on Tuesday on stronger demand for aircraft engine parts and services amid a strong recovery of air transport.
The Boston-based industrial conglomerate now expects adjusted earnings per share for 2023 to be between $1.70 and $2.00 (€1.54-1.81), down from a previous forecast of $1.60 to $2.00.
Free cash flow for the year is expected to be between $3.6 billion and $4.2 billion, compared to the previously forecast $3.4 billion to $4.2 billion.
The aviation sector’s rapid recovery from the pandemic boosted earnings for engine makers as supply chain disruptions forced airlines to use older planes, boosting demand for aftermarket services.
Within its aeronautical activity, the most profitable, GE manufactures engines for the Boeing 787 jumbo jets. Its joint venture with the French Safran, CFM International, equips the American manufacturer’s 737 MAX airliners and the Airbus 320neo jets.
The title General Electric took 1.4% in exchanges before the stock market on Wall Street.
(Reporting Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bangalore; Kate Entringer, editing by Blandine Hénault)
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